IndustryWeek Best Plants

Benchmarking Database
Sample Report
Version 7.0

Contents
Page
General information and screen captures…………………………………2
List of metrics included in the IW Best Plants Database…….……..……3
IW Best Plants Statistical Profile report………………………..……….…12
Feature article sample – Best Plants winner profile………………….….13
Ordering information………………………………………...………………14
The only database of its kind in the world

The IndustryWeek Best Plants Benchmarking

Database can show you how top
manufacturers set themselves apart. Which
tactics do they implement? How do they
measure their performance? With more than
230 different benchmarks, the Best Plants
database provides you with enough
information to profile successful practices in
areas such as operations, quality,
maintenance, worker productivity, supply
chain, innovation, and more.

The Best Plants Benchmarking Product Includes:

 An interactive, Web-based benchmarking database, always updated with the latest data
available
 The last five IW Best Plants Statistical Profile Research Reports, including the 2007 edition
 Complete editorial feature profiles from the past 12 years (over 100)

FACT:
On average, IW Best Plants award winners and finalists
conduct 4 benchmarking studies each year.

How much benchmarking is YOUR company doing?

2
Screenshots
Welcome to the IndustryWeek
Best Plants Benchmarking
Database – select an operations
section or view all of them at
once.

Once inside a section, you can

look through each metric, with
frequency counts, percentages,
quartiles (25%, means/50%,
75%, 90%), and standard
deviations.

Enter parameters to filter the

data so that your custom
benchmarks are created – then
update the information by
pressing the button at the top.

Your results are displayed for every

metric, and a running list of filters is
right at the top of every metric list.
Export your benchmarks at any
time. Create as many benchmarks
as you need.

3
 Benchmarking Metrics included in the IW Best Plants Database

IndustryWeek's Best Plants Database allows you to analyze more than 250 performance metrics from Best Plants winners, finalists, and participants. This list shows you all of
the questions that are included in the database. You can cross-tabulate the data based on any one (or more) of the responses shown below. For example, you can view
performance data for just Public companies, or for plants with 100-249 employees, etc.

**Numerical responses: For any question with "Numerical" marked in the "Responses" column, you are able to view all of the following: Mean, Median, Standard Deviation, 25th
Percentile, 75th Percentile, and 90th Percentile. You can also sort the data based on a Minimum or Maximum number -- for example, you can view the performance results for
plants with "at least a 97% on-time delivery rate."

Benchmarking Metrics included in the IW Best Plants Database

# SECTION QUESTION RESPONSES
GENERAL Best Plants competition winner, finalist, or non-finalist: 0=Finalist, 1=Winner, 2=Non-finalist
1 INFORMATION
2 Public or Private: 0=Private, 1=Public

3 Years since plant startup:, 1=0-5, 2=6-10, 3=11-20, 4=Over 20

4 Number of days operating per week?
5 Number of shifts:
Square footage of plant: 1=0-49,999, 2=50,000-99,999, 3=100,000-249,999,
6 4=250,000-499,999, 5=500,000-999,999, 6=1,000,000+
Number of employees: 1=fewer than 100, 2=100 -249, 3=250-499, 4=500-999,
7 5=1,000 or more
8 Are plant workers represented by a union? 0=Nonunion, 1=Union
In which value chain does this plant primarily participate? 1=Aerospace, 2=Automotive, 3=Chemicals,
4=Construction, 5=Consumer packaged
goods/nondurables, 6=Consumer product durables,
7=High tech, 8=Industrial equipment and machinery,
9=Pharmaceuticals, biotechnology, medical, 10=Printing
9 and publishing, 11=None of the above
10 Product type: Discrete, Process, or Both, 1=Discrete, 2=Process, 3=Both
MANAGEMENT Annual savings (as a percentage of cost of goods sold) achieved due to
PRACTICES improvement methodologies, %
11
12 Labor cost as a percentage of costs of goods sold, %
13 Overhead as a percentage of costs of goods sold, %
14 Material costs as a percentage of costs of goods sold, %
15 Dedicated improvement people as a percent of total workforce
Total documented cost savings as a result of specific improvement programs
over the most recent year per employee:
16
Number of kaizen blitz or kaizen event programs conducted in most recent 12-
month period?
17
18 QUALITY Has plant received ISO 9001:2000 certification? 0=No, 1=Yes

19 Has the plant received TS 16969 certification? 0=No, 1=Yes

People dedicated 100% to quality control, percentage of total plant workforce
20
21 Cost of quality as a percentage of cost of goods sold:
22 Quality techniques extensively implemented: Six Sigma 0=No, 1=Yes

23 Quality techniques extensively implemented: Quality function deployment 0=No, 1=Yes

Quality techniques extensively implemented: Poka-yoke (mistake-proofing) 0=No, 1=Yes
methods
24
Quality techniques extensively implemented: Failure mode effect analysis 0=No, 1=Yes
(FMEA)
25
26 Quality techniques extensively implemented: Total quality management 0=No, 1=Yes
Quality techniques extensively implemented: Employee problem-solving teams 0=No, 1=Yes
27
28 Quality techniques extensively implemented: Plan/do/check/verify 0=No, 1=Yes
Quality techniques extensively implemented: Advanced product quality planning 0=No, 1=Yes
(APQP)
29

4
30 Quality techniques extensively implemented: Manual SPC 0=No, 1=Yes

31 Quality techniques extensively implemented: Computerized SPC 0=No, 1=Yes

32 Quality techniques extensively implemented: Design of experiments 0=No, 1=Yes

33 Quality techniques extensively implemented: Taguchi Methods 0=No, 1=Yes

34 Finished product current first-pass yield, %

35 Finished product yield improvement* within last 3 years, %
First-pass yield for all finished products (weighted average that accounts for
differences in product volumes or in value-added), %
36
First-pass yield for all finished products (weighted average that accounts for 1=Less than 75, 2=75-89.9, 3=90-94.9, 4=95-96.9, 5=97-
differences in product volumes or in value-added), % 98.9, 6=99-100
37
38 Does plant calculate rolled throughput yield 0=No, 1=Yes
In-plant defect rate (fallout rate) on manufactured components and finished
products, ppm
39
40 Percent reduction in in-plant defect rate* in last 3 years, %
41 Customer reject rate on shipped products, ppm
42 Percent reduction in customer reject rate* in last 3 years, %
43 Scrap/rework costs as a percent of sales, %
Scrap/rework costs as a percent of sales, %, 1=Less than 1, 2=1-1.9, 3=2-4.9,
4=5-14.9, 5=15% or higher
44
45 Percent reduction in scrap/rework as a percent of sales in last 3 years*, %
46 Warranty costs as a percent of sales, %
Warranty costs as a percent of sales, % 1=Less than 0.5%, 2=0.5-0.9, 3=1-1.9, 4=2-2.9, 5=3-9.9,
47 6=10% or more
Percent reduction in warranty costs as a percent of sales within last 3 years, %
48
EMPLOYMENT What is the plant's current annual labor turnover rate? %
49 PRACTICES
What is the plant's current annual labor turnover rate? %, 1=Less than 3, 2=3-
5.9, 3=6-10.9, 4=11-15.9, 5=16-20, 6=More than 20
50
51 What was annual labor turnover rate 3 years ago*? %
52 What is the plant's current annual absenteeism rate?
How often is employee satisfaction formally measured at this plant?
(__times/year)
53
How often is employee satisfaction formally measured at this plant? (__
times/year), 1=Less than 1, 2=1, 3=More than once
54
Percent of production workforce now participating in self-directed or empowered
natural work teams, %
55
Percent of production workforce now participating in self-directed or empowered 1=0%, 2=1-50%, 3=More than 50%
natural work teams, %
56
57 Average number of people per work team:
58 Work team responsibilities: Production scheduling 0=No, 1=Yes

59 Work team responsibilities: Interteam communications 0=No, 1=Yes

60 Work team responsibilities: Skills certification 0=No, 1=Yes

61 Work team responsibilities: Disciplinary actions 0=No, 1=Yes

62 Work team responsibilities: Safety review and compliance 0=No, 1=Yes

63 Work team responsibilities: Environmental compliance 0=No, 1=Yes

64 Work team responsibilities: Quality assurance 0=No, 1=Yes

65 Work team responsibilities: Firing of team members 0=No, 1=Yes

66 Work team responsibilities: Daily job assignments 0=No, 1=Yes

67 Work team responsibilities: Performance reviews (peer evaluation) 0=No, 1=Yes

68 Work team responsibilities: Training 0=No, 1=Yes

69 Work team responsibilities: Hiring of team members 0=No, 1=Yes

70 Work team responsibilities: Vacation/work scheduling 0=No, 1=Yes

71 Work team responsibilities: Materials management 0=No, 1=Yes

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 How many layers of management are there below the plant manager at this
facility?
72
Does plant share information about plant financial performance with all 0=No, 1=Yes
employees?
73
How many improvement suggestions per employee did your plant record last
year?
74
How many improvement suggestions per employee were implemented last year?
75
What were the total annual cost savings as a result of employee suggestions in
the most recent fiscal year?
76
Average annual hours of formal classroom training per production employee:
77
Average annual hours of formal on-the-job training per production employee:
78
Average annual hours of formal classroom and on-the-job training per new
employee:
79
80 Average annual hours of formal training per production employee:
Average annual hours of formal training per production employee: 1=Less than 8 hours, 2=8 - 20 hours, 3=21 - 40 hours,
81 4=More than 40 hours
82 Percent of annual labor costs budgeted to training, %
83 Percent of annual labor costs budgeted to training, % 1=0-3, 2=4-5, 3=6-10, 4=More than 10%
Has plant established a training curriculum with a local college or other provider? 0=No, 1=Yes
84
85 Does plant emphasize cross-training of production employees? 0=No, 1=Yes

86 Performance compensation: Rewards for individual performance 0=No, 1=Yes

87 Performance compensation: Rewards for team performance 0=No, 1=Yes

88 Performance compensation: Profit sharing 0=No, 1=Yes

89 Performance compensation: Gain sharing 0=No, 1=Yes

90 Performance compensation: Pay for knowledge 0=No, 1=Yes

91 Performance compensation: Pay for skills 0=No, 1=Yes

Average wage (calculated as hourly rate without overtime) of production
employees, $ /hr.
92
What percentage of production employees are salaried rather than hourly? %
93
94 Does plant employ temporary or seasonal workers? 0=No, 1=Yes

95 Average hours of overtime per week for production employees:

96 Is all overtime voluntary? 0=No, 1=Yes

97 Has the plant recently laid off any employees? 0=No, 1=Yes

98 SAFETY Has plant experienced any work-related fatalities in last 5 years? 0=No, 1=Yes

99 Has plant been cited for any serious OSHA violations in past 5 years? 0=No, 1=Yes
For the most recent calendar year, what was plant's OSHA-reportable incident
100 rate (work related injuries and illnesses per 100 employees)?
For the most recent calendar year, what was plant's OSHA-recordable injury and
illness cases with days away from work, job transfer or restriction (lost-workday
101 rate reported prior to 2004)?
Average OSHA-reportable incident rate as a percent of the industry average, %

102
Average OSHA-recordable injury and illness cases with days away from work,
job transfer or restriction (lost-workday rate prior to 2004) as a percent of the
103 industry average, %
Percentage change in OSHA-reportable incident rate within last 3 years,%

104
Percentage change in OSHA-recordable injury and illness cases with days away
from work, job transfer or restriction rate (lost-workday rate prior to 2004) within
105 last 3 years, %

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 Does the plant have a transitional work program on site for injured workers? 0=No, 1=Yes

106
As part of your accident prevention program, do you monitor and investigate near 0=No, 1=Yes
misses?
107
Does plant participate in VPP program or similar program in Mexico, Canada, or 0=No, 1=Yes
108 state-administered program?
Has plant used a formal behavioral-based safety strategy? 0=No, 1=Yes
109
CUSTOMER Does company have a formal customer-satisfaction program in place?
RELATIONS
110
111 How often are customer-satisfaction surveys conducted (per year)?
Are results of customer-satisfaction surveys shared with all employees? 0=No, 1=Yes
112
Does the plant have access to and use real-time customer demand data to plan 0=No, 1=Yes
113 production?
Are you contractually committed to annual cost reductions with any of your 0=No, 1=Yes
114 customers?
Does plant offer JIT delivery to customers? 0=No, 1=Yes
115
Percentage of customers for which the plant has adopted a continuous-
replenishment or JIT delivery program:
116
To what extent has plant created opportunities for employee interaction with 0=None, 1=Some, 2=Wide
117 customers?
What percent of production employees visited customer locations in the last
year? %
118
What percentage of total annual sales orders does the customer change after
initial order placement? %
119
NEW PRODUCT Do product-development or product engineering activities occur at plant? 0=No, 1=Yes
DEVELOPMENT
120
Total annual research and development costs as a percent of cost of goods sold,
%
121
What is the product-development cycle time today? (days)
122
What was the product-development cycle time 3 years ago? (days)
123
Percentage change in product development time over past 3 years, %
124
What percentage of plant's current production (based on dollar value of
shipments) is represented by new or redesigned products introduced within the
125 previous 12 months? %
SUPPLIER Which of the following best describes your site's relationship with suppliers? 0=Focused on price, 1=Focused on delivery, 2=Focused
RELATIONS on quality, 3=Focused on total cost, 4=Focused on
126 capabilities, 5=Other
127 To what extent has plant adopted JIT/kanban systems with suppliers? 0=None, 1=Some, 2=Wide
What percent of key suppliers provide JIT delivery? %

128
What percent of key suppliers have been formally certified? %

129
Are suppliers contractually committed to annual cost reductions? 0=No, 1=Yes

130
Do on-site "resident suppliers" (representing key vendors) manage and replenish 0=No, 1=Yes
inventories of items purchased from their firms?
131
What percentage of purchased materials and components (dollar volume) is
132 managed by on-site suppliers? %
133 Does plant have consignment inventory on site? 0=No, 1=Yes
If the plant has consignment inventory, what percentage of purchased materials
134 is owned by on-site suppliers until it is pulled into production? %
135 Do high-volume suppliers deliver to point-of-use in the plant? 0=No, 1=Yes

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 What percent of purchased materials and components (dollar volume) is
136 delivered to point-of-use? %
Do major suppliers contribute to cost-reduction and/or quality-improvement 0=No, 1=Yes
efforts?
137
When supplier initiatives yield cost savings for the plant, are cost savings shared 0=No, 1=Yes
with the supplier?
138
139 What percent of procurement is placed with suppliers via the Internet? %
What percentage of supplier orders are delivered on-time (by the request date)?
%
140
Percent of purchased material (dollar volume) that no longer requires incoming
141 inspection, %
Typical leadtime on class-A (high cost) purchased materials, days:
142
Percent reduction of average leadtime on class-A purchased materials in last 3
years, %
143
Has management undertaken a strategic sourcing initiative? 0=No, 1=Yes
144
145 Percent reduction in number of suppliers, %
146 What are total logistics costs as a percent of sales?
Total premium freight chargers as a percentage of total freight for the most
recent calendar year, %
147
TECHNOLOGY Anticipated annual change in capital equipment spending in upcoming year, %
148
149 Asset turnover (net sales / average total assets), turns per year
Asset turnover three years ago, turns per year
150
Degree Implemented: Enterprise Resource Planning (ERP) 0=Do Not Plan to Implement, 1=Plan to Implement,
151 2=Implemented
Degree Implemented: ERP II 0=Do not plan to implement, 1=Plan to implement,
152 2=Implemented
Degree implemented: MRP 0=Do not plan to implement, 1=Plan to implement,
153 2=Implemented
Degree implemented: MRP II 0=Do not plan to implement, 1=Plan to implement,
2=Implemented
154
Degree Implemented: Manufacturing Execution System (MES) 0=Do Not Plan to Implement, 1=Plan to Implement,
2=Implemented
155
Degree implemented: Financial Management System 0=Do not plan to implement, 1=Plan to implement,
156 2=Implemented
Degree Implemented: Computerized Maintenance Management 0=Do Not Plan to Implement, 1=Plan to Implement,
157 2=Implemented
Degree Implemented: Warehouse Management System 0=Do Not Plan to Implement, 1=Plan to Implement,
158 2=Implemented
Degree Implemented: Transportation Management System 0=Do Not Plan to Implement, 1=Plan to Implement,
159 2=Implemented
Degree Implemented: Advanced Planning and Scheduling 0=Do Not Plan to Implement, 1=Plan to Implement,
160 2=Implemented
Degree implemented: Design Systems 0=Do not plan to implement, 1=Plan to implement,
161 2=Implemented
Degree Implemented: Product Data Management 0=Do Not Plan to Implement, 1=Plan to Implement,
162 2=Implemented
Degree implemented: Customer-Relationship Management (CRM): 0=Do Not Plan to Implement, 1=Plan to Implement,
163 2=Implemented
Degree implemented: PLM 0=Do not plan to implement, 1=Plan to implement,
164 2=Implemented
Degree implemented: EDI 0=Do not plan to implement, 1=Plan to implement,
165 2=Implemented
Degree Implemented: Electronic Procurement 0=Do Not Plan to Implement, 1=Plan to Implement,
166 2=Implemented
Degree implemented:Online Selling 0=Do not plan to implement, 1=Plan to implement,
167 2=Implemented
Degree implemented: Mobile Management 0=Do not plan to implement, 1=Plan to implement,
168 2=Implemented
Investment in production technology and equipment as a percentage of annual
169 sales for most recent fiscal year, %:

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 MANUFACTURING What is the plant's annual capacity utilization (total annual production/design
OPERATIONS AND capacity)? %
170FLEXIBILITY
To what extent has plant adopted cellular manufacturing practices? 0=None, 1=Some, 2=Wide
171
To what extent has plant adopted focused-factory production systems? 0=None, 1=Some, 2=Wide
172
To what extent has plant adopted JIT/continuous-flow production methods? 0=None, 1=Some, 2=Wide
173
To what extent does plant employ an internal "pull" system with kanban signals? 0=None, 1=Some, 2=Wide
174
To what extent has this plant adopted standardized work? 0=None, 1=Some, 2=Wide
175
To what extent has this plant adopted 5S? 0=None, 1=Some, 2=Wide
176
To what extent has this plant adopted level scheduling? 0=None, 1=Some, 2=Wide
177
178 Do plant managers and production personnel practice value-stream mapping? 0=No, 1=Yes

179 Has plant emphasized lot-size reduction? 0=No, 1=Yes

By approximately what percentage have lot sizes been reduced, %?
180
Have quick-changeover methods been widely adopted? 0=No, 1=Yes
181
How frequently is the master production schedule updated?, 1=Daily, 2=Weekly, 3=Monthly, 4=No production
182 schedules, all work linked to customer orders
183 Current takt time for primary product (seconds):
Percentage of shifts over the past 12 months during which takt time was
184 achieved, %:
What is the manufacturing cycle time for a typical product? Hours
185
What is the manufacturing cycle time for a typical product? Hours 1=Less than 5 hours, 2=5-24.9 hours, 3=25-99.9 hours,
186 4=100-999.9 hours, 5=1,000 hours or more
187 By what percent has manufacturing cycle time been reduced within the last 3 years? (5 years reported prior to 2002)
By what percent has manufacturing cycle time been reduced within the last 3 1=Decreased more than 40%, 2=Decreased 21-40%,
years? 3=Decreased 1-20%, 4=Stayed the same, 5=Increased 1-
188 20%, 6=Increased more than 20%
For major products, what is your current standard order-to-shipment leadtime in
189 days? (day=24 hours)
For major products, what is your current standard order-to-shipment leadtime in 1=Less than 5 days, 2=5-19.9 days, 3=20-49.9 days,
190 days? (day=24 hours) 4=50-99.9 days, 5=100 days or more
By what percent has standard order-to-shipment leadtime been reduced within
last 3 years?
191
By what percent has standard order-to-shipment leadtime been reduced within 1=Decreased more than 40%, 2=Decreased 21-40%,
last 3 years? 3=Decreased 1-20%, 4=Stayed the same, 5=Increased 1-
192 20%, 6=Increased more than 20%
On-time delivery (% of time), %
193
On-time delivery (% of time), % 1=Less than 70, 2=70-89.9, 3=90-94.9, 4=95-97.9, 5=98-
194 99.9, 6=100
On-time rate based on: 1=Date customer requested, 2=Date promised

195
MAINTENANCE What is the average machine availability rate as a percent of scheduled uptime?
%
196
What percentage of maintenance work is reactive (in response to unexpected
machine or equipment breakdown)?
197
Operating equipment efficiency (OEE) for major production lines:
198
Does plant practice Total Productive Maintenance? 0=No, 1=Yes

199
200 Do machine operators perform preventative and routine maintenance? 0=No, 1=Yes
Has plant implemented computerized maintenance management (CMMS)? 0=No, 1=Yes
201

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 INVENTORY Percent change in total plant unit volume within last 3 years, %:
202MANAGEMENT
Percent change in total plant unit volume within last 3 years, %: 1=Decreased more than 20%, 2=Decreased 11-20%,
3=Decreased 1-10%, 4=Stayed the same, 5=Increased 1-
203 10%, 6=Increased 11-20%, 7=Increased more than 20%
Average days of raw-materials inventory:
204
205 Percent change in raw materials inventory within last 3 years,%
206 Average days of work-in-process (WIP) inventory:
207 Percent change in WIP inventory* within last 3 years, %
208 Average days of finished-goods inventory:
Percent change in finished-goods inventory within last 3 years, %
209
Average days of inventory (raw material, WIP, and finished goods):

210
211 Percent change in total inventory* within last 3 years, %
212 Annual raw materials turns
Annual raw materials turns: 1=Less than 5 turns, 2=5-11.9 turns, 3=12-23.9 turns,
213 4=24-51.9 turns, 5=52 turns or more
214 Annual work-in-process (WIP) turns
Annual work-in-process (WIP) turns: 1=Less than 5 turns, 2=5-14.9 turns, 3=15-29.9 turns,
215 4=30-51.9 turns, 5=52 turns or more
216 Annual finished goods turns:
Annual finished goods turns: 1=Less than 3 turns, 2=3-6.9 turns, 3=7-9.9 turns, 4=10-
217 14.9 turns, 5=15-24.9 turns, 6=25 turns or more
218 Annual total inventory turns:
Annual total inventory turns: 1=Less than 3 turns, 2=3-6.9 turns, 3=7-9.9 turns, 4=10-
219 24.9 turns, 5=25 or more turns
Number of SKUs (stock keeping units) in finished goods inventory:
220
221 Percentage change in number of SKUs within last three years, %:
ENVIRONMENTAL Has plant achieved ISO 14000 certification? 0=No, 1=Yes
222STEWARDSHIP
By what percent has the plant reduced toxic waste releases in the last 3 years,
223 %?
Has plant been cited by federal or state Environmental Protection Agency 0=No, 1=Yes
224 authorities for violations of environmental laws within the last 5 years?
By what percent has energy consumption per unit of production increased or
225 decreased in last 3 years, %?
COMPETITIVENESS Current productivity as annual value-added per employee, $ per employee:
AND MARKET
226RESULTS
By what percent has productivity improved within the last 3 years, annual value-
227 added per employee, %?
228 Current productivity as sales per employee, $ per employee:
Current productivity as sales per employee, $ per employee: 1=Less than $50,000, 2=$50,000-$99,999, 3=$100,000-
$149,999, 4=$150,000-$199,999, 5=$200,000-$249,999,
6=$250,000-$299,999, 7=$300,000-499,999, 8=$500,000
229 or more
By what percent has productivity improved within the last 3 years, annual sales
230 per employee, %?
Approximate 3-year manufacturing-cost change per unit of product shipped,
excluding purchased-materials costs, %
231
Approximate 3-year manufacturing-cost change per unit of product shipped, 1=Decreased more than 20%, 2=Decreased 11-20%,
excluding purchased-materials costs, % 3=Decreased 1-10%, 4=Stayed the Same, 5=Increased 1-
232 10%, 6=Increased 11-20%, 7=Increased more than 20%
Approximate 3-year cost change per unit, including purchased-materials costs, %
233
Percent change of customer price of typical product in the last 3 years, %

234
Annual change in total plant revenue for the most recent fiscal year, %
235
236 What is plant's major customer retention rate for the last 3 years, %?

10
 What is the plant's return on invested capital (ROIC)?

237
What was the plant's ROIC three years ago?
238
Change in plant-level profitability (annual value of shipments minus materials
239 costs and manufacturing costs) in last 3 years, %

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Included in your subscription:
IW Best Plants Statistical Profile
Research Report

 This report provides a

composite picture of the
winners and finalists of IW's
Best Plants program from
2003 through 2007.
o 94 pages
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terms, including how the
calculations were
performed
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introduction
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2008 IW Best Plants
competition

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 If you’re looking for a guide to quickly determine how your plant stacks up
against manufacturing leaders, this is it!

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Detailed features on 100 different
IW Best Plants winners
 Learn how these facilities achieved world-class manufacturing status

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